Last night, Bitcoin dropped below the 65,700 mark and quickly bounced back after hitting a low of 65,222. It regained 65,700 and climbed back to the key level of 66,500. This movement involved a sharp dip that tricked short sellers while simultaneously causing long traders to be liquidated, surprising many shorts. By this morning at 8:00 AM, the market had created a base at 66,500 and then surged past 67,250, reaching a high of 67,615. Currently, Bitcoin is consolidating and moving sideways.
Key focus:
Support levels: 66,850-66,500 and 65,700.
Resistance: around 67,850.
The sideways action suggests the market is waiting for peak liquidity in the European and American sessions, with a current unfavorable risk-to-reward ratio for both long and short trades.
The key levels to watch are 65,700, 66,855, and 67,870. Traders should monitor whether Bitcoin dips further in the evening, breaks through resistance, or enters a consolidation phase before another surge.
Advice: Wait for the market to stabilize. This volatility suits non-trend-based contracts, but it's not ideal for spot trading. Spot traders should remain patient, while contract traders can consider short trades by looking for key signals, such as pin bars and volume reversals, especially in the evening.
